Collectibles are items that are usually expressly made for people to collect. You will often hear special terms for collectibles such as limited edition, collector’s edition, special edition, deluxe edition, and more. These types of items can include things such as books, arts, cars, fine wine, stamps, coins, and more.
What Does Renters Insurance Cover?
Renters insurance covers personal belongings that are damaged, lost, or stolen. A tenant’s damaged or lost belongings due to theft, vandalism, or fire are reimbursed through renters insurance according to the policy terms.
Renters insurance also covers injuries to another person in the event it happened in your apartment. For instance, if a person falls in your apartment and injures themselves, they could file a liability claim through your insurance provider which would be covered if you have this type of insurance. This type of insurance may also provide compensation for special living arrangements during instances like fire or storm damage that leads to your home being uninhabitable.
Serious collectors know that not having their collectibles properly insured could be very costly. Renters insurance typically does not always cover collectibles or they put a strong limit on payout. However, for just a few dollars more a month, you can purchase blanket coverage of $10,000 or more to protect your collectibles at full value.
Types of Collectibles
Silver & Gold
Many insurance policies limit coverage for silver and gold pieces (silverware, dinnerware, etc.) from $2500 to $5000. If you have items like this that fall within this price range, you should be fine with basic insurance, but if you have more valuable precious metals, you might want to look into additional protection.
Stamps & Valuable Papers
Normally, basic policies limit coverage to around $1000 for these types of collectibles. Stamp collections, however, can be insured for more coverage. Things like tickets and passports should be held in a safety deposit box.
Coins & Money
Most policies limit coverage on money to around $200. This also includes the money in your wallet and items like medals, bullion, banknotes and coins. For coin collectors, they should really consider getting extra coverage since coin collections actually appreciate in value versus the everyday dollar bills we use.
Avid sports fans tend to have collectibles in their home. Things such as baseball card collections or personally signed Michael Jordan autographed basketballs are not usually covered. In the event of damage or theft, you will want to be sure your precious sports memorabilia is covered.
Other collectibles include antique toys, records, posters, and various figurines to name a few.
You would think that your collectibles would be covered under your renters insurance in the event of floods. However, just like structural flood damage is not covered under homeowners insurance, neither are the contents in your home either.
If you live in a high-risk flood zone, it is essential that you get some type of protection. You can get flood protection for your valuable possessions through the National Flood Insurance Program with a $100k limit. Premiums are not as costly as you think and average around $250 a year.
It can be frustrating to realize that you are covered in all other areas of your policy except for flood damage. Therefore, it’s a good idea to get yourself some extra protection for flooding.
Other Ways to Protect Your Collectibles
Although a collectibles insurance policy is a good idea and a great way for protecting your valuable collections, you can keep them safe in other ways as well. Things like installing a security system, getting a fire safe, and not broadcasting the fact you have valuables will help protect your treasures as well.
We all value having a roof over our heads, however, in some instances, what is actually under our roof can be most important to us and in some cases, can be more valuable (relatively speaking) than the home we live in. There is intrinsic value even in the homes of the minimalist and obtaining collectibles or valuables insurance coverage is relatively inexpensive and worthwhile. You wouldn’t want to spend all that time collecting valuable pieces only to lose them in the end and not be reimbursed.